Shared ownership again sorry what's wrong with my logic?

jjuggle

I'm a big fan of shared ownership! I bought 25% of a London flat, when I relocated to Bristol I bought a 60% share in a big victorian house, after 3 years moved areas and made enough money to have a small mortgage and 100% of my own house..yay!" I say go for it, at least you aren't wasting loads of money renting

gingertips

Im not a supporter of Shared ownership...& yes I believe it is essentially a scheme which helps prop up an unrealistic housing market. If people cannot afford to buy property 6 or 7 times their salary then property prices are overpriced! its that simple. Providing other ways to make them pay more only support further consistent price rises...what happens if prices doubled again in next 5 years - would people support 20% shared ownership, 10 years 10%?! Or how about 50 year mortgages?!

People cannot get a mortgage 6 or 7 times their salary, so how else can developers get people to pay the overpriced fees of these properties? Simple - they call it "shared ownership" - sell you half the house at half their "perceived" price. The perceived price is a number they make up they think they can get away with, rather than 5% margin on the price to build. there is little transparancy & that would be my first question - whats your margin on this property at the asking price & what did it cost you to build it?

You then move in, pay all the costs to maintain the property - but not the developer , yet they still retain 60% of the value of the property and anything you do in terms of improving it?!

A friend of mine looking to buy a larger house is an owner of a 50% shared ownership flat for which he paid at the full asking price of £230k. When he had the property valued by the EAs they valued it at close to £190k....so now he is in negative equity & unable to move.

poppysarah

jjuggle wrote: »

I'm a big fan of shared ownership! I bought 25% of a London flat, when I relocated to Bristol I bought a 60% share in a big victorian house, after 3 years moved areas and made enough money to have a small mortgage and 100% of my own house..yay!" I say go for it, at least you aren't wasting loads of money renting

Only because of a rising market.

brit1234

chimpxp wrote: »

you can get some ex-local authority properties that would be suitable and priced around 220-250. I'm thinking they might be my best bet. I've now consumed enough information to realise that shared ownership is not a good idea even though on the surface it's very tempting.

Lucky escape, as the others said shared ownership is a scam designed to keep prices high whilst bleeding the buyer out of money. The service charge also goes up by RPI +5% a year.

I have too many friends with bad experiences of shared ownership and many are trapped.

By the way how much deposit have you got and have you considered saving more whilst prices are falling.

slinkywish

I'm a shared ownership owner and it really works for me. I bought on my own and would have only been able to get a grotty studio in a nasty area. I now have a gorgeous lovely big flat in a nice area and it still costs me less than renting.

poppysarah

slinkywish wrote: »

I'm a shared ownership owner ....it still costs me less than renting....

a full flat...?

But with 100% of the maintenance costs.

chimpxp

brit1234 wrote: »

Lucky escape, as the others said shared ownership is a scam designed to keep prices high whilst bleeding the buyer out of money. The service charge also goes up by RPI +5% a year.

I have too many friends with bad experiences of shared ownership and many are trapped.

By the way how much deposit have you got and have you considered saving more whilst prices are falling.

I've got a 30k deposit. Yeah i could and will try and save more while i'm looking. The market appears to still be moving pretty quick round here (hackney), but maybe other areas are a better bet.

Thanks to the person that suggested the 2 bed flat in hoxton - that seems like a good place to me

zzzLazyDaisy

OP, how old are you? are you a first time buyer? how likely is it that you might marry/have a child within the next five years and need to move to a bigger place?

The reason I am asking these questions is that different solutions are appropriate at different stages in our lives.

My cousin had two children and was renting in an expensive part of Surrey. She couldn't move because the children were doing very well at school. She had two moves due to the landlord wanting the house back, which were majot upheavals for her and the children. She bought shared-ownership with the local authority - her rent/mortgage/maintenance is a lot lower than she was paying privately, and she has the security of knowing she can't be moved on. She would never have been able to afford to buy outright, it simply wasn't an option as her wage was too low to get a mortgage on anything else. So it was the best possible choice for her.

On the other hand, I have a friend who is young, single, and although not earning a lot at the moment, she has a very bright future with lots of earning potential ahead of her. I would never suggest that she goes the shared-ownership route as she has the capability to save a good deposit and as a ftb she will be well placed to negotiate a good deal when the time is right for her to buy.

Horses for courses...

chimpxp

well I've recently split up with a partner of 9 years. I'm 36 single with a good career. I have no idea whether I will meet anyone or have kids . having posted the original question and read the posts I'm pretty certain shared ownership is not a good idea for me. I just got tempted by the lure of having a nice new big place to live. I think the most sensible option is for me to try and find a small place that I can try and buy outright...ideally with two bedrooms so i can rent a roon out to an attractive girl and then marry her

zzzLazyDaisy

chimpxp wrote: »

I think the most sensible option is for me to try and find a small place that I can try and buy outright...ideally with two bedrooms so i can rent a roon out to an attractive girl and then marry her

Sounds like a plan